Correlation Between An Phat and Hoasen
Can any of the company-specific risk be diversified away by investing in both An Phat and Hoasen at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining An Phat and Hoasen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Plastic and Hoasen Group, you can compare the effects of market volatilities on An Phat and Hoasen and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in An Phat with a short position of Hoasen. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Hoasen.
Diversification Opportunities for An Phat and Hoasen
Poor diversification
The 3 months correlation between AAA and Hoasen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Hoasen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoasen Group and An Phat is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on An Phat Plastic are associated (or correlated) with Hoasen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoasen Group has no effect on the direction of An Phat i.e., An Phat and Hoasen go up and down completely randomly.
Pair Corralation between An Phat and Hoasen
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.94 times more return on investment than Hoasen. However, An Phat Plastic is 1.06 times less risky than Hoasen. It trades about -0.02 of its potential returns per unit of risk. Hoasen Group is currently generating about -0.02 per unit of risk. If you would invest 958,000 in An Phat Plastic on September 3, 2024 and sell it today you would lose (108,000) from holding An Phat Plastic or give up 11.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Hoasen Group
Performance |
| Timeline |
| An Phat Plastic |
| Hoasen Group |
An Phat and Hoasen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Hoasen
The main advantage of trading using opposite An Phat and Hoasen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Hoasen can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hoasen will offset losses from the drop in Hoasen's long position.| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. Alphanam ME | An Phat vs. APG Securities Joint |
| Hoasen vs. Vietnam JSCmmercial Bank | Hoasen vs. Saigon Beer Alcohol | Hoasen vs. Century Synthetic Fiber | Hoasen vs. Saigon Viendong Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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